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Enhancing Competitiveness for Inclusive Growth

Enhancing Competitiveness for Inclusive Growth. Working Group on Decentralization and Local Governance. Sub-Theme 2. Strategic Directions to Competitive Economy. Improving Transaction Flows and Reducing Costs Accelerating Infrastructure Development

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Enhancing Competitiveness for Inclusive Growth

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  1. Enhancing Competitiveness for Inclusive Growth Working Group on Decentralization and Local Governance Sub-Theme 2

  2. Strategic Directions to Competitive Economy • ImprovingTransaction Flows and Reducing Costs • Accelerating Infrastructure Development • Strengthening the Development of Industries with high impact potential • (SMEs, tourism, agribusiness, mining, IT-BPO) • Providing for Ecological Integrity • CreatingEffective Access to Financing

  3. Figure : Ranking on the Ease of Doing Business Among Asian Countries Source: Doing Business 2008

  4. Figure: Ranking on the Number of Procedures to Start a Business Among Asian Countries (Source: Doing Business database)

  5. Figure : Ranking on the Cost to Start a Business Among Asian Countries (Source: Doing Business database)

  6. Infrastructure bottlenecks • Critical infrastructure = roads, power, transport, water • Philippines underinvests in physical infrastructure; ave rage spending is 2% of GDP and this share has been declining in the last 10 years • inefficient ground transport infrastructure facilities that increases the cost of moving goods and people • absence of modern international gateway airport that restricts tourism, trade and investment • power sector is unreliable and expensive. Electricity prices in the country are among the highest in the country

  7. Poor quality of living • Ecological integrity implies providing for good quality of living • healthy and clean environment attracts more investments (tourism). • Healthy and clean environment impacts on health and productivity (competitiveness of human resources)

  8. Critical Role of LGUs • LGUs provide the support systems for investments through the ff: - permits and licensing - provision/implementation of incentives - physical planning and zoning - national and local road network (incl. transport planning and implementation) - enforcement of environmental laws

  9. Key Policy Issues and Proposed Agenda 1. Improve transaction flows and costs • Streamlining bureaucratic procedures and reduce processing time • Institutionalize e-governance • Proposed Policy Agenda • Upscale BPLS • Set up one stop shops for business facilitation

  10. Key Policy Issues and Proposed Agenda 2. Development of Industries with High Impact • Providing consistent and predictable investment • policy environment with national government • Proposed Agenda • Harmonize local investment code with Omnibus Investment Code • Integration of designated special economic zones in the Comprehensive Development Plans (CDPs) • Lead formulation of National Tourism Development Plan to harmonize with local tourism development plans • Review of the Philippine Mining Act and harmonize with local development plans • Amend LGC to support national investment codes

  11. Key Policy Issues and Proposed Agenda 2. Development of Industries with High Impact • Encouraging diversification and entrepreneurship in agriculture • Proposed Agenda: • Expand Sustainable Upland Development (SUD) model • Provide innovative market linkages (e.g. Food Terminals, Bagsakan Centers) • Support Agrarian reform communities

  12. Key Policy Issues and Proposed Agenda 3. Infrastructure Development • Pursuing infrastructure initiatives through PPP • Proposed Agenda • Develop PPP guidelines for LGUs • Capacity building for PPP team

  13. Key Policy Issues and Proposed Agenda 3. Infrastructure Development • Pursuing reforms in local infrastructure development and management • Proposed Agenda • Regional or metropolitan cluster for road network • Support development of Comprehensive and Integrated Infrastructure Plan • Improve local road construction through competitive procurement processes • Adopt quality management systems (ISO standards)

  14. Key Policy Issues and Proposed Agenda 4. Quality of Living • Encouraging investment in solid waste and sanitation • Proposed Agenda • Strengthen PPP in waste management

  15. Key Policy Issues and Proposed Agenda 4. Quality of living • Enforcing environmental controls • Proposed Agenda • Incorporate sustainability practices and disaster risk management standards in CLUPS/zoning • Improve national-local interface by allowing NGA representatives to participate in LDC deliberations • Create metropolitan or regional scale management (clustering) for flood management, sanitation,SWM

  16. Priority LGU Policy Issues • Streamlining the bureaucracy • Improving coordination: national and local, - Investment Codes, Investment incentives - Tourism Plans, Mineral Action Plan - Infrastructure plans • Master planning for environmental concerns (flood mgt, SWM, sanitation) • PPP

  17. Thank you

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